New vs Established Investment Property in 2026: Why the Tax Rules Now Favour New Builds
From 1 July 2027, two investors paying the same price for the same rent can face very different tax bills, simply because one dwelling is new.
Australia’s Property Listings Slide Further – What This Means for Investors in 2025
As demand surges and stock tightens, investors are turning to high-yield strategies.
Australia’s property market continues to tighten, with the latest June 2025 figures from SQM Research revealing an 8.8% monthly drop in total residential property listings. This shift reflects more than just a seasonal trend—it signals a growing imbalance between housing supply and demand across the country.
For property investors, particularly those focused on income-generating and growth-oriented assets, this market presents strong opportunities. With limited stock and rising rents, the environment favours those pursuing high-yield investment properties, cash positive investment properties, and strategic regional investment opportunities.
Current Market Snapshot
Total listings fell to 234,067 in June—down 8.8% from May.
New listings dropped 9.1% over the month and 3.7% compared to June 2024.
Old listings (180+ days) remain 13.1% higher year-on-year, despite a 7.0% monthly fall.
Distressed listings declined 1.1% month-on-month and 11.1% annually.
Asking prices rose 0.5% nationally in June and 9.0% over the year.
Sydney and Melbourne experienced the steepest listing drops, while Brisbane, Perth, and Adelaide showed strong pricing resilience—further reinforcing the trend toward high-demand markets with constrained supply.
Why Are Listings Falling?
Seasonal factors contribute to fewer listings in winter, but the current contraction is also due to:
Heightened population growth and migration
Supply chain delays in construction
Reluctance among sellers due to market uncertainty
Strong buyer activity absorbing available stock
This environment creates opportunities for property investors to secure assets with solid rental returns and strong long-term fundamentals—especially in markets where new listings are not keeping up with demand.
Investor Insights: What This Means for Your Portfolio
With fewer listings and ongoing demand, the market is tilting in favour of well-positioned property investors.
1. Target High-Yield Investment Properties
Properties that generate above-average rental income are becoming increasingly valuable. Designs like co-living investment properties and dual occupancy properties allow owners to maximise returns through multiple rental streams. In tight rental markets, these formats offer both resilience and profitability.
2. Prioritise Positive Cash Flow
Many investors are adjusting strategies to focus on cash positive investment properties that offset higher interest rates with immediate rental income. This approach enhances portfolio stability while maintaining growth potential.
3. Consider SMSF-Friendly Properties
There’s rising demand for SMSF property investment, with many Australians using their super funds to purchase real estate. With stable rental income and long-term capital growth, SMSF friendly investment properties offer a practical option for retirement planning.
4. Explore Regional Investment Opportunities
With affordability stretched in capital cities, many investors are looking to regional investment opportunities. Locations in Queensland, Western Australia, and regional Victoria are showing strong rental yields and rising property values—making them ideal for portfolio diversification.
What’s Happening with Prices?
Despite falling listings, prices continue to climb:
Adelaide led the gains with a 1.9% monthly increase and 17.4% annual growth.
Brisbane and Perth also showed strong growth, up 1.3% and 0.8% for the month.
Canberra posted a 2.9% rebound in June.
Sydney and Melbourne remained steady with modest monthly and annual increases.
These figures highlight the continued strength of the Australian property market, particularly in cities and regions where supply constraints meet strong demand.
What to Watch: Key Tips for Investors in 2025
Act while listings are low: Limited supply means less competition for quality assets.
Prioritise income-producing properties: In a higher rate environment, yield matters more than ever.
Look outside traditional metros: Regional towns and secondary cities are producing strong results.
Leverage property inside super: SMSF investment continues to grow as a preferred long-term strategy.
Conclusion: A Strategic Moment for Property Investment
The June 2025 SQM Research report confirms that Australia’s residential market is entering a low-supply, high-demand cycle—an environment where the right property choice can deliver strong returns.
Whether you’re exploring dual occupancy properties, co-living homes, or looking for rental income properties that support retirement goals, the data points to one conclusion: this is a key moment to invest.
Visit our website to view all our available investment properties and take advantage of Australia’s top-performing high-yield opportunities: www.ausinvestmentproperties.com.au
Source: SQM Research
Photo by Troy Mortier on Unsplash
From 1 July 2027, two investors paying the same price for the same rent can face very different tax bills, simply because one dwelling is new.
TL;DR The May 2026 Federal Budget abolished negative gearing for established properties purchased after 12 May 2026 and will replace the 50 per cent CGT discount with indexation from 1 July 2027. New builds are exempt and keep both tax benefits. With ABS data showing rents still rising and housing the biggest driver of inflation, high yield new builds such as co-living, dual occupancy and duplex homes now offer stronger cash flow and better tax treatment.
This report provides a quarterly review of pricing across current market listings analysed by Aus Investment Properties. It is designed as an investor-grade market snapshot of build pricing, land pricing and package pricing across residential investment product types and key states. Unless otherwise stated, all standard residential analysis excludes Specialist Disability Accommodation (SDA), which is reported separately because specification, compliance settings and package structure differ materially from non-SDA stock.
Australian property market forecasts for 2026 are generally positive, with most analysts expecting moderate price growth across the country. For property investors, however, headline growth figures tell only part of the story. The real question is not whether prices will rise, but where investment property fundamentals still stack up under tighter borrowing conditions and higher holding costs.
Don't just observe the housing crisis – leverage it. Understand how Australia's unprecedented dwelling deficit could be the catalyst for your next successful investment. Australia is grappling with a significant housing shortage, a topic dominating headlines and impacting individuals across the nation. While the human element of this crisis is undeniable, for astute property investors, it also presents a compelling, long-term opportunity.
National housing supply rises as Sydney and Melbourne lead the surge, creating new options for investors across Australia August 2025 delivered a noticeable shift in Australia’s property market, with national listings climbing 5.2% month on month. While this signals renewed confidence among vendors, overall supply remains 4.2% lower than the same time last year. For investors, this mix of rising monthly supply and subdued annual volumes highlights a property sector in transition. The market is no longer at its tightest point, but it is also a long way from the runaway growth cycles of earlier years. Instead, investors face a more nuanced environment where new opportunities are emerging, yet careful due diligence and strategic selection remain essential.
Capital Growth 12 months, measures the increase in a property’s value over the previous 12 months, indicating how much the investment has appreciated in that timeframe.
Capital Growth 10-year annualised, reflects the average annual increase in a property’s value over the last decade, smoothing out short-term fluctuations to show long-term appreciation trends.
Vacancy Rate, indicates the percentage of properties that are currently unoccupied in that postcode, It’s a key indicator for investors to assess the rental demand.